Robert Dutkowsky is now charged with leading Tech Data Corp. out of its financial difficulties.
At the start of the month he replaced CEO Steven Raymund, who led the company his father founded in 1974 for 20 years. Raymund is staying as non-executive chairman of the board.
“Bob possesses a highly successful track record in driving sales growth and leading companies through periods of change and development,” Raymund said in a news release. “His sales expertise, business acumen and leadership ability in the areas of distribution and product development are an enormous addition to our company.”
“I am excited to be a part of an extremely dynamic and successful organization,” said Dutkowsky.
Observers have noted that Dutkowsky doesn’t have much experience running low-margin companies like distributors. However, that was dismissed by Tech Data Canada president Rick Reid.
“That’s something that smart people can learn very quickly,” Reid said. “He’s surrounded by 9,000 fellow employees who have a lot of experience in running a company that runs on low margins, so I expect he’ll be taught in a hurry what that’s all about.”
Dutkowsky, 51, joins the company at a difficult time in its history. It recorded a net loss of US$155.5 million for the second quarter ended July 31. This compares to a net loss of US$59.4 million for the same period in 2005. The results included a US$136.1 million goodwill loss, based mainly in Europe, along with a further US$8.4 million charge to increase the valuation allowance for certain deferred tax assets.
Net sales for the quarter were US$4.9 billion, an increase of 2.7 per cent from $4.8 billion in the second quarter of fiscal 2006 and flat sequentially as compared to the first quarter of the current fiscal year.
Meanwhile arch-rival Ingram Micro said its worldwide sales hit the highest second-quarter level in company history, reaching US$7.40 billion, an eight per cent increase from US$6.84 billion in the prior-year period.